Victor Camargo
05/07/2021
This Friday, the euro was on a strong rise, reaching the region of 1.216, afterweak payroll data caused investors to abandon the dollar. At the beginning of the session,Economic data showed that Germany’s industrial production in March had itsbiggest increase since October last year, and the foreign trade data signaleda recovery in global demand. In France, industrial activity did not reach theexpectations.
In contrast, the DXY index extended its losses and was trading close toits lowest point in 2 months. In addition to a weak job report, the employment rateunemployment also registered an increase, rising to 6.1%, which increased theuncertain prospects for the recovery of the US labor market.
The Dow Jones was trading lower today, while the S&P 500 wasclose to its opening level and the Nasdaq up 0.5%. In the week, the Dowregistered an increase of 2%, renewing historical highs, the S&P 500 had an increase of 0.5%,while the Nasdaq fell more than 2.3%.
In Europe, the indices extended gains and closed the week on the positive, with DAX30 closing close to 15370. German industrial production had its biggest increase in Marchin five months, while export and import numbers better thanexpected from Europe’s largest economy signaled a solid recovery in theglobal demand. On the corporate front, BMW remains on the right track to fulfillprofit targets for 2021, although he noted that risingraw materials and a global chip shortage could hit production in the secondquarter. Siemens increased its profit and sales projection for the entire year,while Credit Agricole’s profits increased in the first quarter. Adidasupdated its forecast for 2021 due to higher than expected demand for itsproducts.
The US economy added 266,000 jobs in April 2021, after an increaserevised from 770 thousand in March and well below expectations of 978 thousand, sinceemployers face shortages of workers. Notable gains from work inleisure and hospitality (331 thousand), other services (44 thousand) and local government education (31 thousand)thousand) were partially offset by losses in temporary assistance services (-111thousand) and in post offices and couriers (-77 thousand). Jobs also fell in manufacturing(-18 thousand) and retail trade (-15 thousand) and remained unchanged in construction. InApril, non-agricultural employment fell 8.2 million, or 5.4%, compared to the earlier pandemicFebruary 2020. The shortage of skilled workers and the supply ofparts and materials can impair employment in factories in the short term. Someanalysts also consider that the increase in unemployment benefits iskeeping people at home and not taking jobs.
Source: https://wintrademarkets.com
